CDialogues PLC Trading Statement (9170F)

TIDMCDOG

RNS Number : 9170F

CDialogues PLC

17 November 2015

CDialogues plc

("CDialogues", the "Company" or the "Group")

Trading Update

CDialogues plc (AIM: CDOG), the provider of mobile marketing solutions to Mobile Network Operators (MNOs), provides a further trading update for the year ending 31 December 2015.

Third quarter revenues were lower in comparison with the first two quarters, despite expected seasonality, due to weaker performance of certain projects in September. Moreover, monthly revenues achieved in October and November (to date) have been broadly unchanged relative to those experienced during September. As such the current revenue levels are likely to continue until the close of the year. This has had a consequential effect on EBITDA.

Additionally, delays in the Company's new business pipeline have led to certain project launches originally anticipated to take place in the fourth quarter of 2015 now being predicted to take place in 2016. Certain pipeline related expenses have already been incurred, which will have a negative effect on fourth quarter EBITDA.

As a consequence of the above, the Board now believes that revenue for the year ending 31 December 2015 will be below current market expectations, with EBITDA for 2015 being materially below current market expectations.

As part of its normal budgeting process, the Board is reviewing its internal forecasts for the year ending 31 December 2016. Whilst this budgeting process has not yet been finalised, it is likely that these forecasts will be lower than current market expectations.

The Group maintains a strong balance sheet with net cash as of 31 October 2015 above EUR3.6 million (31.12.2014: EUR 2.42 million) while it paid dividends of EUR 280k to its shareholders within the current financial year. Over 90% of Group cash is maintained in banks in the United Kingdom. The Group does not generate any revenues in the Greek market.

Enquiries:

 
 CDialogues Plc        Tel: [phone] 
 George Karakovounis 
 Pale Spanos 
 
 Allenby Capital       Tel: [phone] 
  Limited 
 David Hart 
 Alex Brearley 
 
 Walbrook PR Ltd       Tel: [phone]/ [e-mail] 
 Paul Cornelius        Mob: [phone] 
 Nick Rome             Mob: [phone] 
 

About CDialogues

CDialogues provides mobile marketing solutions enabling MNOs to retain and acquire market share, increase average revenue per user (ARPU) and reducing subscriber churn.

The Company's products and services deliver fully managed solutions, utilizing advanced Data analytics techniques combined with Linguistic engineering marketing, to build awareness and multiply sales and opt-ins of promotional offerings and other mobile content being offered by the MNOs.

The solutions designed by the Company, are tailored and served with the appropriate Linguistic format, to each individual mobile network subscriber typology and geography it operates in, using its proprietary software and scalable infrastructure.

The majority of CDialogues' revenues are derived from a recurring subscription-based revenue model, which has been pioneered by the Company. As a result, the Company benefits from incremental cash flow growth from each new campaign customer and mobile network subscriber.

The Company's near-term focus is on growing both its customer base and expanding its geographic footprint in selected markets in the Middle East, Africa and Southeast Asia, where mobile device penetration and mobile network usage is growing rapidly.

CDialogues has been profitable and cash flow positive since commercial operations began in early 2012.

This information is provided by RNS

The company news service from the London Stock Exchange

END

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November 17, 2015 02:00 ET (07:00 GMT)